Next snaps up stake in womenswear brand Reiss for £33m
High street giant Next has acquired a stake in womenswear retailer Reiss for £33m.
The fashion firms this morning announced that Next will purchase a 25 per cent equity stake in Reiss.
Warburg Pincus, Reiss’s private equity owner, said the deal values the company at around £200m.
As part of the strategic partnership, Reiss will transition its online platform, warehouse distribution and logistics to Next’s infrastructure platform, in a bid to boost its digital shopping capabilities.
It will serve as a “launch pad” for Reiss’ growth plans in the UK and overseas.
The retailer will retain management autonomy and creative independence – with its own board of directors – and will continue to be based in London.
Next said in the first year, after accounting for integration and acquisition costs, the investment will have minimal impact on group profits.
However, it is expected to make a positive contribution in the following years.
Christos Angelides, Reiss chief executive, said: “I believe the partnership with Next will be transformational for Reiss’ operational effectiveness.
“Next’s infrastructure will ensure Reiss is not only more efficient as a business but more effective at serving its customers directly through Reiss stores, at Reiss.com and through its worldwide partners.”